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2018 | Book

Introduction Read chapter Read first chapter

Industrial Project Management

International Standards and Best Practices for Engineering and Construction Contracting

Author: Prof. Stefano Tonchia

Publisher: Springer Berlin Heidelberg

Book Series : Management for Professionals

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

This book describes the principles and techniques in Project Management as applied to Engineering & Construction Contracts (ECC), conforming with relevant international standards (PMI - IPMA - ISO 21500), and pursuing a fully company-wide, process-based, multi-project approach.

Uniquely, the book combines Project Management fundamentals with international contracting practices, which shape the planning, design and construction of large and complex works (such as plants, machinery, infrastructures and buildings) worldwide. The rigorous academic approach is mixed with the managerial contributions of Danieli, one of the world’s top three suppliers of plants and equipment to the metals industry.

The book has been updated to reflect the PMBOK 6th edition (September 2017), presents best practices in PM from around the globe, and addresses new trends in PM such as Agile, SCRUM, etc. Lastly, a dedicated section covers the professional use of the reference software Microsoft Project.

Table of Contents

Frontmatter

Project Management: Fundamentals and Perspectives

Frontmatter
1. Introduction
Abstract
The organization and management of an enterprise is increasingly considered from the viewpoint of competitive advantage: the technical equipment of firms may be the same and technology can often be acquired. Organisation and management are more difficult to imitate and so determine the characteristic of a winning strategy: uniqueness. If several firms possess a Ferrari, success will depend on their ability to drive it.
Stefano Tonchia
2. The International Standards of Project Management
Abstract
After a brief history of PM and depicting today’s ambits of application of PM, this chapter introduces the International Standards of PM. Both PMI and IPMA are presented, including their PM certifications. The latest 2017 PMBOK 6th ed. and recent ISO 21500 are compared, as the most actual PM international standards. Then the new perspectives on PM are illustrated, together with PM Maturity Models. Finally Agile/Extreme and SCRUM methodologies are addressed.
Stefano Tonchia
3. The Project Management Process
Abstract
Project Management (PM) as a process-based methodology is presented. A project is an organizational process. The characteristics and performances of a project are outlined. PM is considered opposite to Operations Management (PM). Three different types of projects can be identified: (1) product/process innovation (design and development of new products and services), (2) engineer-to-order or engineering and construction contracting, and (3) strategic, organizational and managerial change.
Stefano Tonchia

Engineering and Construction Projects

Frontmatter
4. Management of Contract Work
Abstract
This chapter deals with management of Contract Work. Starting from legal aspects and contract administration, various types of contract works are faced. The life-cycle of contract work orders is illustrated (starting from a RFO). Then the typical organization of ETO or ECC companies is treated. Special attention is dedicated to the link between engineering on one hand and manufacturing/construction on the other hand (including MPS and MRP).
Stefano Tonchia
5. Product Design
Abstract
In this chapter regards Product Design and how to deliver a product to the market starting from a concept idea. The stages of New Product Development (NPD) are depicted, including product planning, product and process engineering, industrialization and pre-series or ramp-up. ICT tools for managing NPD are highlighted, included: CAD/CAM, Rapid Prototyping, Product Data Management (PDM), PM softwares. Then NPD techniques are presented, classified on the basis of the organizational units more involved: Variety Reduction Program, Design for Manufacturability/Assembly, Concurrent/Simultaneous Engineering, DOE, FMEA, QFD etc. Finally the design-by-platform (Platform Management) is reported.
Stefano Tonchia
6. Service Design
Abstract
In this chapter is dedicated to Service Design. Both service content and service delivery are presented, together with a process-based service improvement. References to service quality (ServQual method) and Customer Satisfaction Indices are made.
Stefano Tonchia

Project Scope and Structuring

Frontmatter
7. Managing a Project
Abstract
This chapter is at the core of Project Management. Starting from the Project Charter and Project Scope, the Work Breakdown Structure (WBS) for ECC companies is addressed, together with good practices to make it. The linkages with other structures, such as OBS and BBS, are defined. The methodological steps of planning, control and reporting are presented, involving the variables of Time, Resources and Costs.
Stefano Tonchia
8. Project Strategy Management
Abstract
This chapter is dedicated to project strategy and performances. Traditional approaches and new competence-based theories are presented. The PM strategies regard output complexity (variety and innovation degree), project scope (in terms of supplier involvement, commonality and carry-over parts), and property of specifications. The multi-project strategies are also presented. Finally performances are considered, at the single project level and portfolio level.
Stefano Tonchia
9. Project Quality Management
Abstract
This chapter regards project Quality management: designing with customers (value-based), designing with suppliers, the design for manufacturability and assembly, reducing internal variety, and using simultaneous and reverse engineering.
Stefano Tonchia

Managing Project’s Variables

Frontmatter
10. Project Time Management
Abstract
This chapter is dedicated to project Time management. It begins with the visual representations of Gantt charts and network diagrams. Then all the network techniques are presented: CPM, PERT, GERT, VERT, with examples and exercises.
Stefano Tonchia
11. Project Organization and Resource Management
Abstract
This chapters concerns project organization and human resource management. With a company-wide approach, organizational structures (matrices etc.) for PM are considered. Particular attention is paid to the role and profession of Project Manager. Resource assignment, work calculation and work loading are finally treated.
Stefano Tonchia
12. Project Communication
Abstract
This chapter is about the importance of Communication for a good PM. “Soft” issues such as project leadership and team working are also considered. The definitions of the various responsibilities inside a project are faced, based on the RACI matrix standard. A focus is also on the management of meetings and the project reporting. Conflict management closes the chapter.
Stefano Tonchia
13. Project Cost Management and Finance
Abstract
This chapter is dedicated to project Cost/Finance management. It includes cost estimating and project budget calculation and optimization. Baseline and Cost Accounts are central. Earned Value is treated as the main method for cost control, together with variance analysis. Cash flow, actualization, capital budgeting methods and KPIs (such as NPV, payback and IRR) are considered as part of the project plan. The chapter ends with Project Financing.
Stefano Tonchia

From Single to Multi-Project Management

Frontmatter
14. Portfolio Management
Abstract
With this chapter the attention moves to the portfolio (multi-project) level. Project interdependencies are presented. A multi-project management methodology is illustrated, including suggestions for a standard project sheet in order to compare different projects. The organizational solution is represented by the Project Management Office(r). The 3R matrix (relevance, risk, resources) is used to visualize the projects portfolio. The PMI processes for Portfolio Management are also reported.
Stefano Tonchia
15. Program Management
Abstract
This chapter is on Program Management. A program is a set of projects with a common scope. The evolution of PgM is delineated, from the aerospace and military origins to modern and future PgM. A significative experience (Aviano 2000) is presented. The chapter is written by a Program Officer.
Stefano Tonchia
16. Project Risk Management
Abstract
This chapter deals with one of the “hot” knowledge areas of PM: Risk Management. The risk is treated according to PMI standards (a RMP certification also exists), but other standards are cited too. Starting from the sources of uncertainty, risk assessment is exemplified (identification, analysis—both qualitative and quantitative—and quotation, that is measurement). The probability-impact matrix is introduced, with the cut-off line. The risk response (proactive or reactive) follows. And how Risk Management should be conducted throughout the duration of the project.
Stefano Tonchia

International Contracting

Frontmatter
17. From Bidding to Project Launching
Abstract
Danieli is one of the three largest world suppliers of plants and equipment for the metals industry. The company has a leading experience, with more than 120 large turnkey projects delivered worldwide. In this chapter, Danieli’s case is illustrated, from the commercial phase (bidding) to project’s planning and launching (risk analysis included). The case, which continues in the following chapter, is rich in tables and examples.
Stefano Tonchia
18. Project Execution
Abstract
Danieli’s case continues, presenting the project execution. The role of Project Manager is exemplified, together with the project organizational chart. Great attention is then on project control and reporting. The on-shore (on site) phase is told, till the contract closing. The case end with the risk monitoring practices.
Stefano Tonchia
Backmatter
Metadata
Title
Industrial Project Management
Author
Prof. Stefano Tonchia
Copyright Year
2018
Publisher
Springer Berlin Heidelberg
Electronic ISBN
978-3-662-56328-1
Print ISBN
978-3-662-56327-4
DOI
https://doi.org/10.1007/978-3-662-56328-1